General Insurance Made Easy
The First Step Towards
A Secure Future
Insurance is a necessity for financial security of the family.
It also serves as a building block for financial planning for life.
M
ost financial
experts
recommend
investing in an insurance
policy for it becomes the
building block for any
financial plan. Insurance
is a simple concept. It is
a financial arrangement
where a group of people,
facing a similar risk, come
together and pool a small
amount each. In case any
of the members face a loss,
the corpus collected is used
to cover the same. Hence,
it works as a method for
distributing risk.
Based on the nature of
the risk being covered,
the two branches of
insurance are life insurance
and non-life (or general)
insurance. As the name
suggests, life insurance
addresses risks to human
life, while all other types
of risks get covered by
general insurance. Health,
disability, motor (both car
and two-wheeler), travel,
home, and marine are
some of the most common
types of general insurance
plans one can avail.
The importance of
general insurance can be
gauged from the fact that
‘Protection’ forms the base
of the financial planning
pyramid. This means only if
one is secured against risks
such as loss of property
and loss of income, can
he or she start to ‘Save’ or
‘Invest’ – which are the
next stages in financial
planning.
For example, health
insurance plans including
Critical illness insurance,
insure you against the
additional cost arising
out of sudden illness/
hospitalization by
providing reimbursement
of the medical expenses or
by cashless settlement with
hospitals. Group health
insurance policies are
also offered by insurance
companies, covering the
employees of Corporates.
Other general insurance
plans like motor, home,
travel, etc., cover you
against financial losses
to your respective assets.
Motor insurance is
now mandated by the
government for all motor
vehicles.
Over the years, financial
institutions have taken
up the responsibility of
distributing such risks for
individuals. Through an
insurance policy, one can
now transfer the risk to an
insurance company. One
such leading provider of
general insurance products
in the country, is The
New India Assurance.
It is a premier Indian
multinational general
insurance company with
presence in 28 countries.
It is the only direct
insurer in India rated
A-(Excellent) by AM Best,
since 2007. The company
has demonstrated a strong
financial performance
(Solvency ratio of 258%)
and a robust year-on-year
growth.
So, go ahead and take the
first step towards a secured
financial future by going
in for a General Insurance
Product!
Disclaimer
This is a Media Marketing Initiative and the opinion expressed in this article is not endorsed by Outlook Money Editorial
www.outlookmoney.com July 2018 Outlook Money
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